New Zealand Q4 Gross Domestic Product Grows 0.8%

(RTTNews) - New Zealand's gross domestic product expanded 0.8 percent on quarter in the fourth quarter of 2014, Statistics New Zealand said on Thursday.

That was in line with expectations and down from the 1.0 percent gain in the third quarter.

Retail trade and accommodation climbed 2.3 percent, due to increased tourist spending, the bureau said, buoyed by a 15 percent increase in international tourist spending. New Zealand household spending also increased 0.6 percent.

"This is the largest growth we've seen in retail and accommodation since the 2011 Rugby World Cup," national accounts manager Gary Dunnet said. "While some of this growth comes from more spending by New Zealanders, overseas visitors had a bigger impact. Spending by Chinese, US, and UK visitors all increased in 2014, though Australians spent less."

Rental, hiring, and real estate services added 1.2 percent in Q4. House sales drove real estate services up more than 20 percent, after falls in recent quarters. Increased banking activity was reflected in a 1.1 percent rise in financial services this quarter, while housing investment rose 5.2 percent.

Manufacturing activity was also up with an increase of 1.0 percent. The main driver was petroleum manufacturing, while imports of intermediate goods (which include fuels, lubricants, and industrial supplies) also increased.

Food, beverage, and tobacco manufacturing was up 1.5 percent, and exports of meat products and dairy products also rose.

On a yearly basis, GDP climbed 3.3 percent - slightly below forecasts for 3.4 percent but up from 3.2 percent in the previous three months.

The size of the economy was NZ$238 billion for the year ended December 2014.